My job shadowing experience was completed at Gateway FS-Waltonville Elevator. During my time at the elevator I learned how to grade grain that was brought in by customers and grain that was shipped out by our truckers. I also helped with weighing inbound and outbound trucks as well as printing their tickets. I helped with payments that were received, prepared invoices, as well as ran daily reports. During wheat harvest I helped dump trucks as well as various other outside tasks such as keeping the grain swept up and the facilities safe. My favorite part was interacting with the customers and creating relationships with them that will help me in the future. I also enjoyed taking the crane to the top of the grain leg and replacing the American Flag.
Hello! I’m Adam Loker, a current junior at SIUC studying Agribusiness Economics
and Agricultural Communications. I am very grateful to be a recipient of the 2024 GFAI Industry Immersion Scholarship, and in the past few months I have gotten to experience a few very meaningful experiences because of it. Growing up on a farm outside of a small town in southern Illinois, Wayne City (about 15 miles east of Mt. Vernon), I have always been around agriculture. My whole life has been spent around farming and agriculture. It hasn’t been until recent years, however, that I’ve begun to grasp the true depth of the agriculture industry. Learning about grain markets, trading, and the vast amount of knowledge there is to learn in the grain industry has really opened my mind to the different possibilities in the grain industry, and I am particularly happy to have gotten the opportunity to get a hands on look at grain merchandising because of this scholarship. On October 1st, 2024, I was able to go to the office of CGB at Mt. Vernon, IN and speak with multiple people, where I learned about “the basics” and much more of the grain merchandising world. Some of the most important lessons I learned revolved around trade and futures markets, which are not-too-easy to digest topics when you are just learning. During my job shadow at CGB, I sat down with Paul Ernst, one of the originators. Some key takeaways from our conversation and the day consist of the following: ● Understanding basis as the “barometer of demand at a given point.” In commercial grain trade, it’s all about basis. It basically says, “This is how much I ‘want’ your grain.” ● Different types of grain facilities. There will be a different basis and differences in operation depending where your facility is and what goes on there. For instance, a river terminal functions differently than a rail terminal, and a soybean processing facility has other important functions that separate it from the other two. ● Freight spread: the cost of getting your product from point A to point B. ● The concept of carry, and how grain intrinsically gains value over time (which is why farmers also store grain!). ● Price discovery: the price that “what you are willing to pay for” meets “what someone is willing to sell at”. During the conversation, we also talked about some of the most relevant topics in agriculture. I asked Paul what he thought were some of the biggest risks to American Agriculture. He responded with three different points: 1. Weather, 2. Competition (particularly from South America), 3. Demand (it's important to not rely on mandates, the free market is always best) Overall, I highly enjoyed the chance I had to visit with CGB. I am very grateful for receiving the GFAI Scholarship, and look forward to my future in the grain industry! Hi! My name is Kaylee Blackford, and I am currently a sophomore at Lake Land College in
Mattoon, Illinois. There, I am studying in the Ag Transfer program as I pursue my Bachelors in Animal Sciences. My goal is to work in animal nutrition at a feed mill, formulating rations for farmers and serving as the middleman between the growers and the livestock producers. Today, I was given the opportunity to shadow at Cissna Park Co-op under both Dan Martinek, the General Manager, and Rowdy Murray, the Feed Mill Manager. Cissna Park Co-op is both a grain elevator and a custom feed mill. Farmers can bring their grain to sell at market prices or choose to hedge and store, like at many other facilities. This area is Dan’s specialty, working with the farmers to help them make their contracts. As Cissna Park is a co-op, each farmer has stock within the operation, which is overseen by a board of directors. Besides the elevator, Cissna Park Co-op is also home to a custom feed mill. Built in the 1950s, their daily goal is to produce twenty-five tons according to Rowdy. The process is still much the same as it was back in the day. Operators weigh grains and supplements from bulk bins or bags to add to the four-ton vertical mixer. Rowdy explained that as a local feed mill, they accommodate the small farmers in the area, mixing feed for many species in a day from pheasants and chickens to cattle and horses. A key piece to understand with this is the order to mix rations, that “the previous batch must improve the next” as there is a small bit of contamination between batches. Though it would be simpler to mix feed for specific species on set days, they continue to mix a variety of rations each day to meet the demand of the locals, some of whom have been getting their feed at Cissna Park Co-op for decades. At the heart of their operations, Cissna Park Co-op is in the best interest of the people in their community, as they proudly support their local FFA chapters and work hard to meet the needs of those around them. The connections I made today are invaluable, and I hope to continue to meet more great people through this scholarship opportunity. If you missed my first reflection, my name is Emily Brooks and I am originally from Prophetstown, IL. I will graduate from the University of Illinois this May with a B.S. in Agricultural and Consumer Economics. I am deeply grateful for the unique learning opportunities that scholarships like the Grain and Feed Industry Immersion Scholarship provide, allowing me to gain practical experience in the fi eld. I recently completed my Spring job shadowing experience at Rock River Lumber and Grain. On the first day, I observed the merchandisers in action. They handled calls from farmers and shared valuable insights on market trends. This experience deepened my understanding of how real-time market conditions and farmer needs intersect and reinforced the importance of staying informed and responsive in this industry. The second day was a much slower pace due to rainy weather. Despite the quieter atmosphere, I found there was still much to observe. During these moments, I saw firsthand how downtime is utilized to strategize and prepare for busier periods. This highlighted the importance of adaptability and foresight in the grain and feed business. Throughout both days, the significance of collaboration and relationship-building was unmistakable. Whether working closely with farmers to understand their needs or coordinating with colleagues to ensure smooth operations, the value of relationships in this industry is abundantly clear. It's not just about transactions; it's about nurturing trust and fostering mutually beneficial partnerships over time. Overall, this experience has deepened my understanding of the grain and feed industry and solidified my passion for agriculture. I've gained invaluable insights into market dynamics, logistical challenges, and the importance of interpersonal connections. Thank you for the journey!
I write to you all again from the Deland Farmers Cooperative in Deland, IL. After completing my second job-shadowing experience with Leland the manager, I am continuing to learn more about the importance and challenges of managing an elevator. Similar to the last time I met with Leland we spent much of the day visiting with farmers over the phone and providing much the same advice and continuing to build many of the same personal relationships that Leland stressed upon building during my last visit. I continued to observe as he guided customers in key marketing decisions and helped them make the best decisions for their operations. We discussed many of the preparations that must be made for new crops to be brought into the elevator such as maintenance to the conveyors, legs, and pits as well as cleaning the bins to limit contamination or damage from crops stored through the summer months or leftovers that weren’t originally hauled out. Leland talked about many of the challenges and factors that he must deal with when considering how and when to sell or market grain. Sharing that one of the most important decisions he must make is to understand how local markets will react to something that may be occurring across the globe. Often you may expect a big rally or shift on a localized basis that will not materialize or simply no reaction will happen at all and that creates a challenge for the elevator to be able to capture profits. He challenged me to think outside of the typical pricing measures and ways of gaining a profit that I am used to using from my family's farm and understand more in-depth how an elevator captures profit utilizing many of the hedging procedures we had previously discussed. He also cited that often basis can be much more predictable than commodity prices and he as the elevator manager must find ways to use the predictability to his advantage and create profit for the elevator. Overall, I greatly enjoyed my time learning from Leland and as a part of the Grain and Feed Scholarship program. As I continue to pursue a career in the grain industry I hope that the connections I have built through this scholarship program will continue to be invaluable.
Hello! My name is Emma Smith, I am currently a sophomore at Illinois State University with a double major in Animal Science and Agribusiness. I am from Seneca, Illinois where I grew up on a diversified grain and livestock operation. I am blessed to have been selected as a recipient of the GFAI Industry Immersion Scholarship. This scholarship is unique in the sense that it not only provides recipients with financial resources, but also with resources that allow students to connect with the grain industry in a unique way. Before the current school year began, my fellow scholarship recipients and I experienced the Industry Immersion Tour, where we were given the opportunity to visit and experience different grain facilities throughout the state. During these three days we were able to network with both each other and professionals within the industry, develop a deeper understanding and appreciation for the grain industry in Illinois, and have the opportunity to be exposed to what happens to the grain once it is unloaded at the elevator.
Speaking of the elevator, in addition to the Industry Immersion Tour we took in August, each recipient is able to shadow a grain facility in the fall and spring. I was fortunate to be paired with Consolidated Grain and Barge Co. (CGB) in Dwight, which is about a half an hour from my home. At the office, I met with Facility Manager, Ryan Tucker, who explained the main purpose and goals of CGB’s Dwight location and how the rail system is a key factor to the success of their operation. I had the unique opportunity to watch as a train was being filled with grain before it headed to the Southeastern part of the United States. As we watched the train be loaded, I was given valuable information about the different rail systems that are utilized, the importance of loading cars in a timely manner, and how organic grain is handled differently than non-organic grain. I also watched how each semi was probed and sampled before entering the facility. We experienced quite a bit of this during our Industry Immersion Tour, but it is always interesting to see the different ways different operations go about this process. While the train was loading, I was able to sit in on a weekly safety call with the general manager, the assistant general manager, the group manager, and several facility managers throughout Illinois. It was quite refreshing to witness managers be so concerned about the safety of their facilities and the wellbeing of their employees. Following the meeting, I was walked through the billing process of the train that was being filled, which can also be applied to train containers - which are what is being filled if a train is not present. I was then fortunate enough to meet with Senior Merchandiser, Sam Sardesai, who walked me through his day-to-day duties. We discussed how important it was to build a relationship with the local producers, rather than just being focused on the dollars and cents of the operation. Mr. Sardesai informed me that the facility was able to come haul the grain of producers if they did not have the equipment to do so, and the scales had the dimensions to fit a tractor hauling two wagons. I thought this was awesome because it creates such a convenient experience for the producers. We then discussed how risk was being managed within an operation. CGB provides solutions such as, but not limited to, floor/ceiling target, precision reports that compare predicted/actual costs in order to predict for the upcoming years, and selling a certain percentage of the crop - all to ensure that the farmer is not in a high risk situation. I was incredibly lucky to have the opportunity to work with CGB’s Dwight location. From even just the short amount of time I was there, I was able to tell they are an operation that truly cares about the producers and I am excited to continue this experience in the spring! My name is Jaton Shaffer, and I am currently a Junior at the University of Illinois in Urbana-Champaign. I am studying Agriculture and Consumer Economics with a focus in Markets and Management. Within my studies at the University, I have been focusing mainly on the commodity futures markets and learning the forces and factors that drive these markets. I may not fully know what my future career will look like. I have taken a serious interest in the grain industry. For my job shadow as a part of the GFAI scholarship program I was paired with Leland Dean at the Deland Farmers Cooperative in Deland, IL. My time spent with Leland this fall was very insightful. During my time I learned more about how elevators protect themselves from losses on the grain they purchase from farmers by hedging using the futures markets. How elevators manage to make money using basis and making timely sales the end user markets that are available to them. As well as how important record keeping is in managing the overall state of the elevator. It wasn’t just the management side of the business that Leland taught me about. Leland shared a lot of the important parts of keeping in touch with your customers, providing advice and wisdom where you feel comfortable, and just how important personal relationships are within the business. Many people stopped by or called the elevator during the day and Leland was always there to visit with them and help them make the best decisions for themselves. I cannot wait to return to Deland this spring and learn more about managing an elevator
Hi me again! Approximately a month later, I traveled back to Tuscola to learn further into their daily business operations at the elevator. As I was pulling into the facility, trucks were digging into the corn pile to move grain into the elevator bins. This is essential as winter weather and commodity quality are negatively correlated. All day trucks were working to reduce the size of the pile and truck it to the grain pits. Chase had some team calls scheduled for the morning time, so I got to listen in and hear about what they thought the market was doing and how things are looking within their region. After the team calls for the day, there was cash grain to be hedged in the futures market. He showed me the process of how a real-life hedge would work and since it was nearing the end of the month, we talked about spreading contracts to the next month. Not only is he managing risk for all the Tuscola grain, but for the six other elevators in the region. This involves a heavy amount of communication and market awareness to be able to pick up on good grain basis opportunities. Collaboration is a key factor to the success of any elevator as there are many moving pieces that need to fit together to accomplish the daily tasks. Originators, operators, and the trading team must be able to have strong skills in communication and problem solving to work as a successful team. Once again, I am honored and thankful to be a scholarship recipient and to spend two days within the grain industry at ADM. Thank you to everyone who has a hand in making this program happen
Hello! My name is Kate Miller, a senior at the University of Illinois majoring in Agriculture Consumer Economics with a focus on Agribusiness Markets & Management. My roots trace back to a grain farm in Macedonia, IL, located in the southern part of the state. Ever since my early days in 4-H as a clover bud, agriculture has been my unwavering passion. Throughout a decade of active involvement, I cultivated my interest in this field. In high school, I joined FFA and proudly earned my Illinois State Degree. I chose the University of Illinois for its renowned College of ACES, which stands among the world's top agriculture colleges. During my time at Uof I, I became part of the 4-H House Cooperative Sorority and spend my free time engaging in excellent organizations like Orange Krush and ACE Ambassadors. Last summer, I had an internship at ADM in Decatur, where I further developed my merchandising and sales skills. I'm set to return to ADM's St. Louis location in Summer 2024 to dive deeper into basis trading and expand my understanding of commodity markets. My career goal is to be a commodity trader so I am educating myself further by taking two courses on basis trading and will receive my grain merchandising certification by the end of the year! This experience has helped me further understand grain elevators and the board of trade. During the fall semester, I chose the ADM Elevator in Tuscola, IL to spend my time learning more about their business structure and market opportunities. I spent most of my time learning from Kenny Hadden, Regional Manager and Chase Rhein, Trade Manager. They gave me a general understanding of the Tuscola Elevator and the several market capabilities. We then further discussed the situations on both the corn and bean piles and how quality can become a serious problem when not tarped or picked up in an efficient amount of time. I was happy to be able to relate what I was learning through my basis trading courses to the conversations during this two-day job shadow experience. After learning an overview of the elevator, I received a tour from two operation employees. They explained how the whole elevator is operated by just one computer and how there is many pros and cons to technology advancing in several spaces within agriculture. I was given a tour of the rail load out system and even got to take the operations elevator up to where they go to fill outbound trains. This experience was unmatched as all their staff was welcoming and they answered all my questions. I would like to say thank you to all the employees at Tuscola and especially Kenny and Chase for making my first day educational and enjoyable. I can’t wait to go back for my second day of job shadowing.
I am a sophomore at the University of Illinois Urbana-Champaign, pursuing dual degrees in Agricultural and Consumer Economics (emphasis in Policy, International Trade, and Development) and Russian, East European, and Eurasian Studies. This semester, I am enrolled in ACE 222 Agricultural Marketing with Professor Paul Stoddard. The course and Grain and Feed Association industry tour have sparked my interest in a career in international grain marketing, allowing me to apply my interests in agriculture and Eastern European studies.
I recently had the privilege of spending two days with Topflight Grain Cooperative Inc. in Monticello. Grain Originator and Crop Insurance Agent Kelley Lawhorn and CEO Derrick Bruhn provided invaluable insights into Topflight's efficient grain operations. With fifteen facilities and 3.159 million bushels of storage capacity at their Monticello location alone, I was impressed by the scale and efficiency of their grain movement and marketing programs for commodities, including corn, soybeans, wheat, and non-GMO beans. I am grateful to Mr. Lawhorn and Mr. Bruhn for taking the time to educate me on the workings of a thriving agricultural cooperative—experiences like this further my goal of one day working in international grain marketing and trade. |
Grain & Feed
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January 2025
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